Enhanced Capital Allowances (ECAs)

The need to conserve water and energy has led the Government to introduce measures to encourage investment in energy efficient technologies. At the outset, incorporating energy efficient assets may seem too expensive, but if these are combined with effective tax planning, the complete asset life costs can be cut considerably.

ECAs are available to taxpayers incurring expenditure on new and unused qualifying energy and water efficient assets – for the purposes of their trade. The relief allows for 100% deduction from profits in the year of expenditure and can be matched easily against capital outlay.

This relief can represent cash savings of 28% of the asset expenditure and significant timing advantages. Since April 2008, a payable credit is available to businesses which incur ECA expenditure but make a loss.

Contact us to find out how we can help you use ECAs to improve your property’s return.

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